Transocean Ltd. Reports First Quarter 2012 Results
(Thomson Reuters ONE) -
Transocean Ltd. /
Transocean Ltd. Reports First Quarter 2012 Results
. Processed and transmitted by Thomson Reuters ONE.
The issuer is solely responsible for the content of this announcement.
ZUG, SWITZERLAND--(Marketwire - May 2, 2012) - Transocean Ltd. (NYSE: RIG) (SIX:
RIGN)
* First quarter 2012 revenues were $2.331 billion compared with $2.422 billion
in the fourth quarter 2011,
* First quarter 2012 net income attributable to controlling interest was $42
million, which included $184 million of net unfavorable items. This compares
with the fourth quarter 2011 net loss attributable to controlling interest
of $6.119 billion, which included $6.176 billion of net unfavorable items,
* Revenue efficiency((1)) was 90.4 percent in the first quarter, compared with
91.9 percent in the fourth quarter 2011,
* Fleet utilization((2)) was 61 percent in the first quarter, unchanged from
the fourth quarter 2011,
* First quarter 2012 operating and maintenance expenses were $1.410
billion. Excluding $1.0 billion for estimated loss contingencies associated
with the Macondo Well incident, fourth quarter 2011 operating and
maintenance expenses were $1.565 billion,
* Cash flows from operating activities were $540 million in the first quarter,
which compares with $563 million in the fourth quarter 2011,
* First quarter 2012 Annual Effective Tax Rate((3)) was 25.5 percent compared
with 59.6 percent in the fourth quarter 2011, and
* New contracts totaling $834 million were secured in the Fleet Status Report
periods February 14, 2012 through April 18, 2012. Since April 18, 2012,
additional contracts totaling $430 million were secured.
Transocean Ltd. (NYSE: RIG) (SIX: RIGN) today reported net income attributable
to controlling interest of $42 million, or $0.12 per diluted share, for the
three months ended March 31, 2012. First quarter 2012 results include net
unfavorable items of $184 million, or $0.52 per diluted share. The results
compare with net income attributable to controlling interest of $310 million, or
$0.96 per diluted share, for the three months ended March 31, 2011. First
quarter 2011 results included net favorable items of $139 million, or $0.43 per
diluted share, primarily associated with the gain on sale of the Trident 20,
partially offset by charges mainly related to unfavorable discrete tax items.
Net unfavorable items, after tax, impacting the first quarter of 2012 include
the following:
* $118 million, or $0.34 per diluted share, increase in the charge associated
with the completion of the measurement of the estimated goodwill impairment
recorded in the fourth quarter 2011 for the contract drilling services
reporting unit,
* $62 million, or $0.17 per diluted share, impairment of the intangible assets
of ADTI, the drilling management services reporting unit,
* $29 million, or $0.08 per diluted share, of favorable discrete tax items,
* $17 million, or $0.05 per diluted share, impairment charge associated with
the sale of GSF Rig 136,
* $15 million, or $0.04 per diluted share, loss associated with the sale of
Challenger Minerals (North Sea) Limited and the impairment of the properties
of Challenger Minerals Inc., and
* $1 million associated with the company's acquisition of Aker Drilling.
Operations Quarterly Review
Revenues for the three months ended March 31, 2012 were $2.331 billion, compared
with revenues of $2.422 billion during the three months ended December
31, 2011. Contract drilling revenues decreased $35 million due mainly to lower
revenue efficiency primarily on Deepwater and Midwater Floaters. Total fleet
revenue efficiency was 90.4 percent for the first quarter, compared with 91.9
percent in the fourth quarter 2011. Other revenues decreased $54 million to $117
million for the first quarter 2012, compared with $171 million in the prior
quarter, primarily due to decreased levels of low-margin drilling management
services activity.
Operating and maintenance expenses totaled $1.410 billion for the first quarter
2012. This compares with $1.565 billion in the fourth quarter 2011, which
excludes $1.0 billion for estimated loss contingencies associated with the
Macondo Well incident. The sequential decline in operating and maintenance
expenses relates to the timing of certain projects and various other
items. These include approximately $70 million in net lower costs incurred on
rigs undergoing shipyard, maintenance, repair and equipment certification
projects during the period; approximately $40 million associated with reduced
activity in the company's low-margin drilling management services reporting
unit; and approximately $35 million related to the fourth quarter 2011
termination of the Deepwater Expedition contract.
Depreciation and amortization expense was $351 million in the first quarter
2012 compared with $374 million in the prior quarter. The $23 million decrease
was due mainly to assets that are now fully depreciated and the impact of
Standard Jackups classified as held for sale or sold.
General and administrative expenses were $69 million for the first quarter 2012
compared with $88 million in the previous quarter, including $1 million and $17
million, respectively, associated with the Aker Drilling acquisition.
Annual Effective Tax Rate
Transocean's Annual Effective Tax Rate ((3)) for the first quarter 2012, which
excludes various discrete items, was 25.5 percent. This compares with 59.6
percent for the prior quarter.
Other Items
For the first quarter, interest expense, net of amounts capitalized, was $180
million, compared with $178 million in the fourth quarter 2011. Capitalized
interest for the first quarter 2012 was $13 million compared with $10 million in
the prior quarter. Interest income decreased to $15 million in the first
quarter, compared with $17 million in the fourth quarter 2011.
Cash flows from operating activities decreased $23 million to $540 million for
the first quarter 2012 compared with $563 million for the fourth quarter
2011. Capital expenditures decreased to $260 million for the first quarter
compared with $350 million in the fourth quarter of 2011. The lower capital
expenditures were primarily due to the timing of shipyard milestone payments
associated with the company's newbuild program.
Forward-Looking Statements
Statements included in this news release, including those regarding estimates of
Transocean's goodwill or long-lived asset impairments and the estimated loss
contingencies associated with the Macondo Well incident, are forward-looking
statements that involve certain assumptions. These statements are based on
currently available competitive, financial, and economic data along with our
current operating plans and involve risks and uncertainties including, but not
limited to, market conditions, Transocean's results of operations and other
factors detailed in "Risk Factors" and elsewhere in Transocean's filings with
the Securities and Exchange Commission. Should one or more of these risks or
uncertainties materialize (or the other consequences of such a development
worsen), or should underlying assumptions prove incorrect, actual outcomes may
vary materially from those forecasted or expected. Transocean disclaims any
intention or obligation to update publicly or revise such statements, whether as
a result of new information, future events or otherwise.
Conference Call Information
Transocean will conduct a teleconference call at 10:00 a.m. EDT, 4:00 p.m. CEST,
on Thursday, May 3, 2012. To participate, dial +1 800-768-6563 or
+1 785-830-7991 and refer to confirmation code 9219164 approximately 10 minutes
prior to the scheduled start time of the call.
In addition, the conference call will be simultaneously broadcast over the
Internet in a listen-only mode and can be accessed by logging onto Transocean's
website at www.deepwater.com and selecting "Investor Relations." A file
containing three charts that may be discussed during the conference call, titled
"1Q12 Charts," has been posted to Transocean's website and can also be found by
selecting "Investor Relations/Quarterly Toolkit." The conference call may also
be accessed via the Internet at www.CompanyBoardroom.com by typing in
Transocean's New York Stock Exchange trading symbol, "RIG."
A telephonic replay of the conference call should be available after 1:00 p.m.
EDT, 7:00 p.m. CEST, on May 3, 2012, and can be accessed by dialing
+1 719-457-0820 or +1 888-203-1112 and referring to the confirmation code
9219164. Also, a replay will be available through the Internet and can be
accessed by visiting either of the above-referenced internet addresses. Both
replay options will be available for approximately 30 days.
About Transocean
Transocean is a leading international provider of offshore contract drilling
services for oil and gas wells. We own or have partial ownership interests in
and operate a fleet of 129 mobile offshore drilling units consisting of 50 High-
Specification Floaters (Ultra-Deepwater, Deepwater and Harsh-Environment
semisubmersibles and drillships), 25 Midwater Floaters, nine High-Specification
Jackups, 44 Standard Jackups and one swamp barge. In addition, we have two
Ultra-Deepwater drillships and four High-Specification Jackups under
construction. The company specializes in technically demanding sectors of the
global offshore drilling business with a particular focus on deepwater and harsh
environment drilling services. We believe we operate one of the most versatile
offshore drilling fleets in the world.
(1) Revenue efficiency is defined as actual revenue divided by the highest
amount of total revenue which could have been earned during the relevant
period(s). See the accompanying schedule entitled "Revenue Efficiency."
(2) Utilization is defined as the total actual number of revenue earning days in
the period as a percentage of the total number of calendar days in the period
for all drilling rigs in the company's fleet. See the accompanying schedule
entitled "Utilization."
(3) Annual Effective Tax Rate is defined as income tax expense from continuing
operations excluding various discrete items (such as changes in estimates and
tax on items excluded from income before income tax expense) divided by income
from continuing operations before income tax expense excluding gains on sales
and similar items pursuant to the accounting standards for income taxes. See the
accompanying schedule entitled "Supplemental Effective Tax Rate Analysis."
(4) Effective Tax Rate is defined as income tax expense from continuing
operations divided by income from continuing operations before income taxes. See
the accompanying schedule entitled "Supplemental Effective Tax Rate Analysis."
For more information about Transocean, please visit the website at
www.deepwater.com.
TRANSOCEAN LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share data)
(Unaudited)
Three months ended
March 31,
------------------------
2012 2011
--------- ------------
Operating revenues
Contract drilling revenues $ 2,203 $ 1,950
Contract drilling intangible revenues 11 10
Other revenues 117 184
--------- ------------
2,331 2,144
--------- ------------
Costs and expenses
Operating and maintenance 1,410 1,359
Depreciation and amortization 351 354
General and administrative 69 67
--------- ------------
1,830 1,780
--------- ------------
Loss on impairment (227 ) --
Gain (loss) on disposal of assets, net (4 ) 8
--------- ------------
Operating income 270 372
--------- ------------
Other income (expense), net
Interest income 15 15
Interest expense, net of amounts capitalized (180 ) (145 )
Other, net (7 ) 3
--------- ------------
(172 ) (127 )
--------- ------------
Income from continuing operations before income tax
expense 98 245
Income tax expense 24 81
--------- ------------
Income from continuing operations 74 164
Income (loss) from discontinued operations, net of
tax (15 ) 176
--------- ------------
Net income 59 340
Net income attributable to noncontrolling interest 17 30
--------- ------------
Net income attributable to controlling interest $ 42 $ 310
--------- ------------
Earnings per share-basic
Earnings from continuing operations $ 0.16 $ 0.42
Earnings (loss) from discontinued operations (0.04 ) 0.54
--------- ------------
Earnings per share $ 0.12 $ 0.96
--------- ------------
Earnings per share-diluted
Earnings from continuing operations $ 0.16 $ 0.42
Earnings (loss) from discontinued operations (0.04 ) 0.54
--------- ------------
Earnings per share $ 0.12 $ 0.96
--------- ------------
Weighted-average shares outstanding
Basic 350 319
Diluted 350 320
TRANSOCEAN LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except share data)
(Unaudited)
March December
31, 31,
2012 2011
---------- ------------
Assets
Cash and cash equivalents $ 3,982 $ 4,017
Accounts receivable, net of allowance for doubtful
accounts of $28 at March 31, 2012 and December
31, 2011 2,238 2,176
Materials and supplies, net of allowance for
obsolescence of $76 and $73 at March 31, 2012 and
December 31, 2011, respectively 663 627
Deferred income taxes, net 142 142
Assets held for sale 53 26
Other current assets 595 621
---------- ------------
Total current assets 7,673 7,609
---------- ------------
Property and equipment 28,960 29,037
Property and equipment of consolidated variable
interest entities 2,255 2,252
Less accumulated depreciation 8,892 8,760
---------- ------------
Property and equipment, net 22,323 22,529
---------- ------------
Goodwill 3,087 3,205
Other assets 1,632 1,745
---------- ------------
Total assets $ 34,715 $ 35,088
---------- ------------
Liabilities and equity
Accounts payable $ 841 $ 880
Accrued income taxes 70 89
Debt due within one year 2,695 1,942
Debt of consolidated variable interest entities
due within one year 97 97
Other current liabilities 2,061 2,350
---------- ------------
Total current liabilities 5,764 5,358
---------- ------------
Long-term debt 9,940 10,756
Long-term debt of consolidated variable interest
entities 724 741
Deferred income taxes, net 512 523
Other long-term liabilities 1,914 1,903
---------- ------------
Total long-term liabilities 13,090 13,923
---------- ------------
Commitments and contingencies
Redeemable noncontrolling interest 138 116
Shares, CHF 15.00 par value, 402,282,355
authorized, 167,617,649 conditionally authorized,
365,135,298 issued at March 31, 2012 and December
31, 2011; 350,500,518 and 349,805,793 outstanding
at March 31, 2012 and December 31, 2011,
respectively 4,991 4,982
Additional paid-in capital 7,216 7,211
Treasury shares, at cost, 2,863,267 held at March
31, 2012 and December 31, 2011 (240 ) (240 )
Retained earnings 4,286 4,244
Accumulated other comprehensive loss (515 ) (496 )
---------- ------------
Total controlling interest shareholders' equity 15,738 15,701
---------- ------------
Noncontrolling interest (15 ) (10 )
---------- ------------
Total equity 15,723 15,691
---------- ------------
Total liabilities and equity $ 34,715 $ 35,088
---------- ------------
TRANSOCEAN LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Three months ended
March 31,
-------------------------
2012 2011
------------- ---------
Cash flows from operating activities
Net income $ 59 $ 340
Adjustments to reconcile to net cash
provided by operating activities:
Amortization of drilling contract
intangibles (11 ) (10 )
Depreciation and amortization 351 354
Share-based compensation expense 23 27
Loss on impairment 227 --
(Gain) loss on disposal of assets, net 4 (8 )
(Gain) loss on disposal of discontinued
operations, net 14 (173 )
Amortization of debt issue costs,
discounts and premiums, net 18 26
Deferred income taxes (30 ) 11
Other, net 21 (3 )
Changes in deferred revenue, net (12 ) 46
Changes in deferred expenses, net (49 ) (36 )
Changes in operating assets and
liabilities (75 ) (184 )
------------- ---------
Net cash provided by operating activities 540 390
------------- ---------
Cash flows from investing activities
Capital expenditures (260 ) (240 )
Proceeds from disposal of assets, net 41 13
Proceeds from disposal of discontinued
operations, net -- 259
Other, net 12 (6 )
------------- ---------
Net cash provided by (used in) investing
activities (207 ) 26
------------- ---------
Cash flows from financing activities
Changes in short-term borrowings, net -- 51
Proceeds from debt -- 5
Repayments of debt (147 ) (47 )
Proceeds from restricted cash investments 108 --
Deposits to restricted cash investments (42 ) --
Distribution of qualifying additional
paid-in capital (278 ) --
Other, net (9 ) (7 )
------------- ---------
Net cash provided by (used in) financing
activities (368 ) 2
------------- ---------
Net increase (decrease) in cash and cash
equivalents (35 ) 418
------------- ---------
Cash and cash equivalents at beginning of
period 4,017 3,394
------------- ---------
Cash and cash equivalents at end of period $ 3,982 $ 3,812
------------- ---------
TRANSOCEAN LTD. AND SUBSIDIARIES
FLEET OPERATING STATISTICS
Operating Revenues (in millions) ((1))
----------------------------------------------
Three months ended
----------------------------------------------
December
March 31, 31, March 31,
2012 2011 2011
----------------------- ----------- ----------
Contract Drilling Revenues
High-Specification Floaters:
Ultra Deepwater Floaters $ 1,092 $ 1,066 $ 844
Deepwater Floaters 236 259 290
Harsh Environment Floaters 255 285 150
----------------------- ----------- ----------
Total High-Specification
Floaters 1,583 1,610 1,284
Midwater Floaters 347 333 400
Jackups:
High-Specification Jackups 78 68 31
Standard Jackups 189 220 229
----------------------- ----------- ----------
Total Jackups 267 288 260
Other Rigs 6 7 6
----------------------- ----------- ----------
Total Contract Drilling
Revenues 2,203 2,238 1,950
----------------------- ----------- ----------
Contract Intangible Revenue 11 13 10
Other Revenues
Client Reimbursable Revenues 48 41 37
Integrated Services and
Other - 13 15
Drilling Management Services 69 117 132
----------------------- ----------- ----------
Total Other Revenues 117 171 184
----------------------- ----------- ----------
Total Company $ 2,331 $ 2,422 $ 2,144
----------------------- ----------- ----------
Average Daily Revenue ((1))
----------------------------------------------
Three months ended
----------------------------------------------
December
March 31, 31, March 31,
2012 2011 2011
----------------------- ----------- ----------
High-Specification Floaters:
Ultra Deepwater Floaters $ 534,900 $ 542,900 $ 467,700
Deepwater Floaters 348,900 351,600 395,900
Harsh Environment Floaters 478,600 468,300 402,400
Total High-Specification
Floaters 486,900 486,600 441,300
Midwater Floaters 275,600 274,300 313,000
High-Specification Jackups 116,900 111,900 106,200
Standard Jackups 91,200 93,400 109,200
Other Rigs 73,300 73,800 73,400
----------------------- ----------- ----------
Total Drilling Fleet $ 300,300 $ 295,400 $ 292,600
----------------------- ----------- ----------
(1) Average daily revenue is defined as contract drilling revenue earned per
revenue earning day in the period. A revenue earning day is defined as a
day for which a rig earns dayrate after commencement of operations.
TRANSOCEAN LTD. AND SUBSIDIARIES
FLEET OPERATING STATISTICS (continued)
Utilization ((2))
----------------------------------------------
Three months ended
----------------------------------------------
March 31, December 31, March 31,
2012 2011 2011
----------- -------------- -------------------
High-Specification Floaters:
Ultra Deepwater Floaters 83% 79% 77%
Deepwater Floaters 47% 50% 51%
Harsh Environment
Floaters 84% 95% 83%
Total High-Specification
Floaters 71% 72% 69%
Midwater Floaters 56% 55% 60%
High-Specification Jackups 81% 74% 40%
Standard Jackups 47% 51% 43%
Other Rigs 98% 99% 49%
----------- -------------- -------------------
Total Drilling Fleet 61% 61% 55%
----------- -------------- -------------------
(2) Utilization is defined as the total actual number of revenue earning days
in the period as a percentage of the total number of calendar days in the
period for all drilling rigs in our fleet.
Revenue Efficiency((3))
Trailing Five Quarters and Historical Data
----------------------------------------------------------------
FY FY
1Q 2012 4Q 2011 3Q 2011 2Q 2011 1Q 2011 2011 2010
--------- --------- --------- --------- --------- ------- ------
Ultra
Deepwater 89.4% 89.5% 86.4% 89.3% 85.3% 87.7% 88.6%
Deepwater 81.1% 88.1% 87.7% 93.9% 88.2% 89.4% 90.3%
Harsh
Environment
Floaters 97.8% 98.0% 94.4% 98.4% 99.2% 97.4% 96.0%
Midwater
Floaters 90.8% 94.2% 90.8% 91.9% 93.6% 92.6% 92.5%
High
Specification
Jackups 93.4% 94.3% 97.3% 95.6% 95.1% 95.6% 95.3%
Standard
Jackups 97.8% 96.4% 98.2% 98.4% 97.7% 97.7% 97.3%
Others 97.3% 98.6% 99.5% 97.6% 99.0% 98.7% 98.4%
--------- --------- --------- --------- --------- ------- ------
Total Fleet 90.4% 91.9% 89.5% 92.1% 90.0% 90.9% 91.7%
--------- --------- --------- --------- --------- ------- ------
(3) Revenue efficiency is defined as actual revenue divided by the highest
amount of total revenue which could have been earned during the relevant
period(s).
TRANSOCEAN LTD. AND SUBSIDIARIES
SUPPLEMENTAL EFFECTIVE TAX RATE ANALYSIS
(In US$ millions, except percentages)
Three months ended
------------------------------------
March December March
31, 31, 31,
2012 2011 2011
--------- ------------ ---------
Income (loss) from
continuing operations
before income taxes $ 98 $ (5,970 ) $ 245
Add back (subtract):
Litigation matters -- 1,000 8
Acquisition costs 1 17 --
Gain on disposal of
other assets, net -- (11 ) (9 )
Loss on impairment of
goodwill and other
assets 227 5,201 --
Loss on marketable
security -- 13 --
Other, net -- -- 5
--------- ------------ ---------
Adjusted income from
continuing operations
before income taxes 326 250 249
--------- ------------ ---------
Income tax expense from
continuing operations 24 132 81
Add back (subtract):
Loss on impairment 30 -- --
Changes in estimates (1) 29 18 (35 )
Other, net -- -- 2
--------- ------------ ---------
Adjusted income tax
expense from continuing
operations (2) $ 83 $ 150 $ 48
--------- ------------ ---------
Effective Tax Rate (3) 24.7 % -2.2 % 33.1 %
Annual Effective Tax Rate
(4) 25.5 % 59.6 % 19.3 %
(1) Our estimates change as we file tax returns, settle disputes with tax
authorities or become aware of other events and include changes in (a)
deferred taxes, (b) valuation allowances on deferred taxes and (c) other
tax liabilities.
(2) The three months ended December 31, 2011 include $46 million of
additional tax expense (benefit) reflecting the catch-up effect of an
increase (decrease) in the annual effective tax rate from the previous
quarter estimate.
(3) Effective Tax Rate is income tax expense divided by income before income
taxes.
(4) Annual Effective Tax Rate is income tax expense excluding various
discrete items (such as changes in estimates and tax on items excluded
from income before income taxes) divided by income before income taxes
excluding gains and losses on sales and similar items pursuant to the
accounting standards for income taxes and estimating the annual
effective tax rate.
Contact Information
Analyst Contacts:
Thad Vayda
+1 713-232-7551
Diane Vento
+1 713-232-8015
Media Contact:
Guy A. Cantwell
+1 713-232-7647
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Transocean Ltd. via Thomson Reuters ONE
[HUG#1608237]
Themen in dieser Pressemitteilung:
Unternehmensinformation / Kurzprofil:
Datum: 02.05.2012 - 17:24 Uhr
Sprache: Deutsch
News-ID 1110050
Anzahl Zeichen: 0
contact information:
Contact person:
Town:
Vernier
Phone:
Kategorie:
Business News
Anmerkungen:
Diese Pressemitteilung wurde bisher 45 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"Transocean Ltd. Reports First Quarter 2012 Results
"
steht unter der journalistisch-redaktionellen Verantwortung von
Transocean Ltd. (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
